Topic: ASICMINER: Entering the Future of ASIC Mining by Inventing It - page 1336. (Read 3917029 times)
Glad it passed. Have the coins been sold yet to raise the capital?
I voted no, shorting assets on an operation that in essence has it's position in regard to bitcoin long seems like the worst move I've ever heard.
Read the OP from HorseRider. ASICMiner is not a BTC investment fund. It's a hardware company. And as such it has to act accordingly, which includes minimize the risk of bankruptcy or failure to attract the necessary funds for strategic operations.
No. midterm the most (because of the need to break even with hardware, or sell it at the right time). Miners who hold on to their BTC are investors, but they don't have to be.
I figured anybody who's investing in an ASIC operation would be aware of this, but I'll spell it out for you:
The incentive structure of mining dictates that it will sooner or later become a sustenance business with low profit margins. The reason why some people still make considerable profit (and others don't) is because the technology spread is so large. The miners with the best hardware and the largest competitive advantage make the most profit. And as long as we haven't hit the technological barrier (found the most efficient solution) miners constantly have to adapt their operation to stay competitive.
As such ASICminer is in a perfect position. It fuels the need for miners to stay competitive, and gets a piece of the action. If done right the company can get a foothold in the sustained development and supply of mining hardware and equipment. This is an attractive place to be in because the need to stay competitive for miners won't go anywhere soon.
I voted no, shorting assets on an operation that in essence has it's position in regard to bitcoin long seems like the worst move I've ever heard.
Read the OP from HorseRider. ASICMiner is not a BTC investment fund. It's a hardware company. And as such it has to act accordingly, which includes minimize the risk of bankruptcy or failure to attract the necessary funds for strategic operations.
Like it or not, this operation needs fiat money to start production of the ASIC
In order to get that fiat coins need to be sold
That leaves this company with the question:
Do we sell coins at this exchange rate so we can definitely start in 2 weeks or do we wait 2 weeks and possibly have a different rate, which might make it easier (higher exchange rate) or not possible (lower exchange rate) to start the operation
From a business standpoint it is a no-brainer: sell as many coins as we need at this exchange rate to get the ASIC from the foundry
If there is NO ASIC there's no mining operation and no hardware selling company... period
Update
The motion has been passed.
Voted Yea:46649
Voted Nay:17439
8,000 BTC will be exchanged for fiat within a relatively short time. We will not dump too fast if the bid wall is not thick enough.
When we start to pay for our expenses, the financials will be given to the public, while details of each spending will be given to board members.
The motion has been passed.
Voted Yea:46649
Voted Nay:17439
8,000 BTC will be exchanged for fiat within a relatively short time. We will not dump too fast if the bid wall is not thick enough.
When we start to pay for our expenses, the financials will be given to the public, while details of each spending will be given to board members.
I'm appreciative of the transparency of the operation thus far, friedcat. Respectable Bitcoin companies offering public shares should look at ASICMINER and follow suit.
Keep it up!
Also, are you planning on trading the 8000 BTC on an exchange, or finding a private party who wants to buy? According to ClarkMoody, selling 8000 on MtGox right now at $10.5 would net $82183.90, with slippage of $1816.25. Selling privately for $10.5 would get $84000, but price could drop before finding somebody... hmm...
I voted no, shorting assets on an operation that in essence has it's position in regard to bitcoin long seems like the worst move I've ever heard.
Read the OP from HorseRider. ASICMiner is not a BTC investment fund. It's a hardware company. And as such it has to act accordingly, which includes minimize the risk of bankruptcy or failure to attract the necessary funds for strategic operations.
not to self: log in to bitcointalk more often. i totally missed this. (me and my five shares totally matter. 
)
) 
Update
The motion has been passed.
Voted Yea:46649
Voted Nay:17439
8,000 BTC will be exchanged for fiat within a relatively short time. We will not dump too fast if the bid wall is not thick enough.
When we start to pay for our expenses, the financials will be given to the public, while details of each spending will be given to board members.
The motion has been passed.
Voted Yea:46649
Voted Nay:17439
8,000 BTC will be exchanged for fiat within a relatively short time. We will not dump too fast if the bid wall is not thick enough.
When we start to pay for our expenses, the financials will be given to the public, while details of each spending will be given to board members.
You could take out a fiat based investment loan and use the 8000btc as collateral placed on deposit with Patrick Harnett. This way you get the fiat and keep the bitcoins.
It wouldn't be shorting the asset. It would be transferring value to a more stable priced asset in anticipation of volatility. You can be long on bitcoin and mining but still understand volatility is a short term factor in the success or failure of this security.
I voted no, shorting assets on an operation that in essence has it's position in regard to bitcoin long seems like the worst move I've ever heard.
Read the OP from HorseRider. ASICMiner is not a BTC investment fund. It's a hardware company. And as such it has to act accordingly, which includes minimize the risk of bankruptcy or failure to attract the necessary funds for strategic operations.
I voted no, shorting assets on an operation that in essence has it's position in regard to bitcoin long seems like the worst move I've ever heard.
I also voted yes.
GLBSE seems to be down for a while till a bug is resolved. But the consensus seems to be sell now the minimum BTC to cover the production costs.
I voted yes also, but now glbse is down again. Hard to vote with service windows like that.
voted yes
I also voted yes.
YEA !
Voted yes. This is obviously the safest course of action for Bitfountain's success.
I just voted Yes as well.
Cant vote for now, glbse is down.
It goes down momentarily occasionally. I just checked and it's back up
Anyways consider me a vote cast for selling those 8000- the market seems to be tied up in this drama with BTCST, and whether or not pirate will pay out. While I don't claim to have a crystal ball, it seems like this episode has many more ways of crashing the price of bitcoin than rallying it.
Thank you for being responsible enough to put it to a vote, friedcat
Cant vote for now, glbse is down.
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